MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON MAY 8, 2000

The Henderson County Board of Commissioners met for a special called meeting at 2:00 p.m. in the Commissioners= Conference Room of the Henderson County Office Building at 100 North King Street, Hendersonville, North Carolina.

Those present were: Chairman Grady Hawkins, Vice-Chair Bill Moyer, Commissioner Renee Kumor, Commissioner Don Ward, Commissioner Marilyn Gordon, and County Manager David E. Nicholson.

Also present were: Finance Director J. Carey McLelland and Budget Analyst Selena Coffey.

Absent was: Clerk to the Board Elizabeth W. Corn. Mr. Nicholson prepared notes in her absence.

CALL TO ORDER/WELCOME

Chairman Hawkins called the meeting to order at 2:00 p.m.

FY 2000 - 2001 BUDGET REVIEW

The Board reviewed the Board of Elections budget and the Office of Budget and Finance=s budget.

Robert Baird, Assessor, presented the budgets for the County Assessor, Land Records, and Reappraisal. Mr. Baird requested three positions that were not included in the County Manager=s Recommended Budget. There were two Customer Service Positions and one appraiser to assist with audits of land use accounts.

Terry Lyda, Tax Collector, presented his request for an additional Tax Clerk. This position would replace one that was transferred to the Delinquent Tax Collector. This position would assist with both real estate and motor vehicles. The Board agreed to fund the position.

Nedra Moles, Register of Deeds, presented her budget request. This request included increasing the hours of one of her employees to full-time. She also requested a vendcard system for a copy machine. The Board agreed to fund these requests.

The Board also reviewed the Legal Department, Public Buildings, and Garage budgets.

The Board stopped the budget review at approximately 3:45 and recessed until the 4:00 meeting.

4:00 p.m. Scheduled Joint Meeting with City Council

re: Sewer Agreement

In addition to the above persons present, the following were present for this portion of the meeting:

Assistant County Manager/Interim County Attorney Angela S. Beeker, Staff Attorney Jennifer O. Jackson, Clerk to the Board Elizabeth W. Corn and the following persons from the City of Hendersonville: Mayor Fred Niehoff, Jr., all Council members as follows: Mary Jo Padgett, Dr. J. Crit Harley, Barbara Volk, and Londa Murray. Town Clerk Tammie Drake was present also.

CALL TO ORDER/WELCOME

At approximately 4:06 p.m., Chairman Hawkins called the meeting to order and welcomed those in attendance. The two Boards have had some discussions concerning provisions of the sewer service to Mud Creek Water & Sewer District, this has been on-going for some time now. Most recently, at the March 10 Board of Commissioners meeting, Commissioner Kumor and Mayor Niehoff presented to the Board a proposed agreement they had authored over coffee at Commissioner Kumor=s kitchen table. Both Boards considered the proposed agreement and agreed to allow a member of each body to work out the proposal in more detail to be brought back to both Boards, that=s why this meeting was scheduled. Commissioner Moyer has been working with Mayor Niehoff to formulate a more detailed proposal for consideration. Chairman Hawkins thanked Commissioners Kumor and Moyer and Mayor Niehoff for their roles in this final draft agreement.

MEMORANDUM OF UNDERSTANDING

Commissioner Bill Moyer distributed the latest copy of the proposed draft agreement (3 pages plus exhibits) or Memorandum of Understanding.

Commissioner Moyer explained that the proposed draft basically provides for the sale of most of the assets of the Mud Creek Sewer District to the City for a cash price of $449,185.00. The overall purpose of the agreement is the City will take over all of the sewer operations in the Mud Creek area, not Cane Creek. In addition to the purchase price, the City will be giving the County an option to buy the property where the City Water and Sewer Department offices currently are. The county desperately needs additional parking for the Courthouse complex.

Commissioner Moyer stated that the agreement goes on to provide for the City to treat all of the sewage that comes from the area, that the County provides and that the City collects. The 1986 agreement will in all respects be terminated and will be superceded by the new agreement. All past legal proceedings as a result of the >86 agreement will be terminated including any County obligation to pay for any of the treatment capacity. The rates that will be charged will be basically the current City rates that apply in the County and that will be a benefit to our customers. Another key provision agreed upon is the establishment of a joint City/County Mud Creek Sewer Planning and Advisory Council. This will be an Advisory Council with respect to such things as the boundaries of the district, sewer line extensions, etc. This council will be a body composed of nine members, three from the City with one being a City Council member, three from the County with one being a County Commissioner, one appointed by the Village of Flat Rock, one appointed by the Town of Laurel Park and those eight will choose a ninth person. The City and County will alternate having the Chairmanship of the Council for two year terms.

With respect to the extension of sewer lines into the County, as currently the City of Hendersonville will not do so without the consent of the County except in very few limited areas. If for any reason the City does not decide to extend the sewer line into the County, the County would have the right to build that line, pay for it itself, and then decide with the City who will own it. The City would treat any sewage coming from that new line even though it could be owned by the County.

One issue that was discussed as part of the Cane Creek area - redefining the boundaries of the Mud Creek and the Cane Creek districts. This will be looked at as part of the agreement. All operations of the sewer will be run by the City of Hendersonville. The planning is a cooperative effort. Commissioner Moyer stated that it is very difficult to bind future Boards but thinks it=s very important to continue to express current intent to make this work by working together and to provide sewer for the benefit of everyone in the Mud Creek basin, City and County.

Chairman Hawkins then recognized Mayor Niehoff to express anything he had missed.

Commissioner Kumor asked for clarification regarding allocations. We used to carry allocations and those aren=t necessary now.

Commissioner Moyer explained that under the old agreement, there was a 500,000 gallon allocation from the City and at some point that would become a problem and the County would have to go back to the City for more allocation. Now, with this agreement, that doesn=t matter because the City has agreed to treat everything and they are confident that they have the capacity to do that so the allocations are a dead issue.

Chairman Hawkins reiterated that the 1986 agreement will be nullified. He mentioned again the basic rate structure and how this proposal would result in a monthly savings to the customers in the County. The proposed Joint Advisory Council will look at particular sewer extensions out into the County as a joint effort with the assistance of the two municipalities in Mud Creek basin. He also stated that it was significant to note that we=re looking at drawing up a sewer district that goes the way the water flows because that avoids a lot of high dollar pumping stations and maintenance, breaks, leaks, etc.

Chairman Hawkins again thanked Mayor Niehoff and Commissioners Kumor and Moyer for working out the details of this win/win agreement.

County adoption

Commissioner Moyer made the motion that the Board of Commissioners adopt the Memorandum of Understanding as our statement of terms and authorize the County Attorney to move forward (along with the City Council and their Attorney) to adopt a legal agreement consistent with the memorandum of understanding.

There was no additional discussion. All voted in favor and the motion carried.

City adoption

Mayor Niehoff entertained the same motion for City Council. Barbara Volk moved the same motion for the City of Hendersonville. Mary Jo Padgett seconded the motion. Ms. Padgett expressed that she was proud to be a part of this endeavor and explained that she appreciated the cooperative effort. All voted in favor and the motion carried.

Commissioner Moyer stated that he had two signature copies for everyone=s signature, one will go to the City of Hendersonville once executed and one to Henderson County. He started the signature copies around the table.

There being no further business to come before the Board, the meeting was adjourned at approximately 4:18 p.m. to the next room for refreshments.

Attest:

Elizabeth W. Corn, Clerk to the Board Grady Hawkins, Chairman